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4 of the biggest news pieces from the ASX200 this week

Tristan Harrison
ASX200 News

The ASX 200 (Index: ^AXJO) (ASX: XJO) is getting back into the swing of things after Christmas. Here are four stories you may have missed that affected businesses in the ASX 200 index:

Pro Medicus Limited (ASX: PME) 

Pro Medicus announced this week that it had signed a 5-year platform deal with Nines for future radiology services.

It’s going to be a transactional based model with the potential for “significant upside”. Base revenue to Pro Medicus will be in excess of AU$6 million.

The offering will be based on Visage 7 technology and will be hosted on the Google Cloud platform.

REA Group Limited (ASX: REA) 

This week REA Group, the owner of the leading property website, received a sizeable boost after the news from CoreLogic about the latest house price movements in December 2019.

Nationally, Australian dwelling prices increased by 1.1% over the month. Sydney and Melbourne prices rose by 1.7% and 1.4% in December, Brisbane and Adelaide prices increased 0.7% and 0.5% respectively. There was little change in Perth, Hobart and Canberra while Darwin house prices fell 0.5%.

Higher prices are likely to mean that REA Group can charge higher fees for advertising plus it’s possible that volumes will rise.

Costa Group Holdings Ltd (ASX: CGC) 

We learned from an announcement from Vitalharvest Freehold Trust (ASX: VTH) that the bushfires had affected the Tumbarumba berry property.

Fires have damaged the packing shed, although it is understood that the plants have not been materially impacted. Assets owned by Costa have been damaged including the packing equipment and several vehicles. A full site evacuation had been done before the impact of the fire front thankfully.

Access to the property was limited at the time of the announcement, so a full damage assessment can’t be completed until it’s safe again.

In terms of scale, this farm only accounts for around 6% of Vitalharvest’s berry plantings.

Insurance Australia Group Ltd (ASX: IAG) 

IAG gave an insurance update this week. It has finalised its catastrophe reinsurance program for the 2020 calendar year, increasing its gross reinsurance protection to up to $10 billion, up from $9 billion.

The insurance giant also gave an update about the net natural peril claim costs, including the bushfire events. As at 2 January 2020 it had received 2,800 bushfire claims since September 2019. IAG expects overall bushfire events to contribute over $160 million of net claim costs in the first half of FY20, post-quota share.

Based on initial estimates, IAG anticipates its net natural peril claim costs for the first half of FY20 will be approximately $400 million post-quota share which included hailstorms in November 2019 on the Sunshine Coast in Queensland and at Timaru in New Zealand.

The post 4 of the biggest news pieces from the ASX200 this week appeared first on Motley Fool Australia.

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Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends Pro Medicus Ltd. The Motley Fool Australia owns shares of and has recommended COSTA GRP FPO. The Motley Fool Australia owns shares of Insurance Australia Group Limited. The Motley Fool Australia has recommended Pro Medicus Ltd. and REA Group Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2020